Matsumoto Inc. (7901) AI Stock Analysis

• Market Cap: ¥1.32B
• Dividend Yield: N/A
• Average Volume (3M): 19.22K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.14
• Revenue Growth: -1.28%
• EPS Growth: -80.80%
• Country: JP
• Employees: 181
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 36.12
• Shares Outstanding: 1,143,900
• 10 Day Avg. Volume: 6,890
• 30 Day Avg. Volume: 19,220
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -4.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ¥1,299.00 ▲(58.41% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held down primarily by poor financial performance (declining revenue, ongoing losses, and negative operating/free cash flow). Technicals are a clear positive with price above key moving averages and positive MACD, but valuation support is limited due to a negative P/E and no dividend yield data.

Positive Factors

Moderate leverage

Reported increase in debt-to-equity yet remaining at a moderate level gives management room to access financing for working capital or targeted investment without extreme leverage. If cash flows improve, moderate gearing supports paced recovery without immediate solvency pressure.

Stable equity ratio

A relatively stable equity ratio signals the company’s book capital base has not been rapidly eroded, providing structural balance-sheet resilience. This stability aids creditor confidence and gives management flexibility for gradual deleveraging or measured capex over coming months.

Lean workforce

A small headcount (181 employees) implies a lean operating footprint and lower fixed payroll 부담, enabling faster cost adjustment and structural flexibility. In a multi-month recovery scenario, this reduces cash burn, eases restructuring, and supports margin improvement if revenues stabilize.

Negative Factors

Declining revenue trend

Sustained revenue decline undermines scale economics and indicates weakening market position or pricing power. Over a 2–6 month horizon this reduces operating leverage, constrains margin recovery potential, and raises execution risk for any turnaround without clear revenue stabilization.

Negative operating and free cash flow

Persistent negative operating and free cash flow means the business cannot self-fund operations or reinvestment, raising reliance on external financing. This structural cash burn limits strategic optionality, increases refinancing or dilution risk, and pressures short-to-medium term liquidity planning.

Negative profitability and ROE

Negative ROE and reported negative net/EBIT margins indicate structural profitability issues. Coupled with rising debt reliance, this reduces resilience to shocks, impairs capacity to rebuild retained earnings, and elevates credit and refinancing risks unless margins or revenue reverse sustainably.

Matsumoto Inc. Business Overview & Revenue Model

Company Description

Matsumoto Inc. engages in the printing business in Japan. It offers graduation commemorative albums for schools; and manufactures general commercial printed materials, such as posters, catalogs, and pamphlets. The company is also involved in Internet-related businesses, including digital photo albums, self-publishing, print mail-order sales, and photo print sales activities. Matsumoto Inc. was founded in 1932 and is based in Kitakyushu, Japan.

How the Company Makes Money

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Matsumoto Inc. Financial Statement Overview

Summary

Weak fundamentals: declining revenue, negative profit/EBIT margins and negative ROE, plus negative operating and free cash flow that raises liquidity and execution risk.

Income Statement

Matsumoto Inc. has experienced declining revenue over the past few years, with a significant drop in revenue growth rate in the latest period. The company is struggling with negative net profit margins and EBIT margins, indicating operational inefficiencies and challenges in maintaining profitability. The gross profit margin has also decreased, reflecting potential issues in cost management or pricing strategy.

Balance Sheet

The company's debt-to-equity ratio has increased over time, suggesting a growing reliance on debt financing, although it remains moderate. The return on equity is negative, indicating that the company is not generating profit from its equity base. The equity ratio is relatively stable, but the overall financial health is weakened by the negative ROE.

Cash Flow

Matsumoto Inc. has negative operating cash flow, which is concerning as it indicates the company is not generating sufficient cash from its core operations. The free cash flow is also negative, and the free cash flow growth rate is highly volatile, reflecting inconsistent cash generation. The ratios of operating and free cash flow to net income are erratic, highlighting cash flow management issues.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	2.14B	2.17B	2.21B	2.24B	2.35B	2.27B
Gross Profit	267.46M	238.70M	326.70M	445.18M	246.38M	110.04M
EBITDA	-144.77M	-172.96M	-103.85M	27.13M	15.51M	-104.14M
Net Income	-624.25M	-653.36M	-86.61M	74.43M	-1.29B	-389.11M
Balance Sheet
Total Assets	2.13B	2.09B	2.84B	2.83B	2.65B	4.23B
Cash, Cash Equivalents and Short-Term Investments	233.28M	219.84M	557.42M	982.96M	948.10M	758.24M
Total Debt	735.63M	348.32M	487.16M	400.00M	100.00M	0.00
Total Liabilities	1.42B	1.26B	1.38B	1.31B	1.21B	1.46B
Stockholders Equity	706.97M	825.17M	1.46B	1.51B	1.44B	2.77B
Cash Flow
Free Cash Flow	0.00	-184.46M	-198.66M	-293.55M	132.30M	-481.60M
Operating Cash Flow	0.00	-136.42M	-68.85M	-73.98M	136.62M	-74.89M
Investing Cash Flow	0.00	-56.26M	-77.26M	-184.13M	-3.03M	-424.22M
Financing Cash Flow	0.00	-144.91M	-279.43M	292.98M	56.27M	-43.83M

Matsumoto Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 820.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7901, the sentiment is Positive. The current price of 820 is below the 20-day moving average (MA) of 1147.15, below the 50-day MA of 1107.88, and below the 200-day MA of 953.61, indicating a bullish trend. The MACD of 33.37 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 70.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7901.

Matsumoto Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3945	78 Outperform	¥3.48B	3.80	―	3.33%	1.53%	20.73%
3892	67 Neutral	¥8.32B	8.81	―	3.00%	-2.03%	-23.36%
3895	66 Neutral	¥3.41B	5.54	―	4.43%	-3.73%	-7.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3955	58 Neutral	¥8.86B	10.13	―	3.00%	4.22%	13.08%
9929	56 Neutral	¥4.56B	26.76	―	2.62%	-1.03%	-43.05%
7901	49 Neutral	¥1.32B	7.17	―	―	-1.28%	-80.80%